Ontario's Second-Year iGaming Review: Revenue Up 41%, Grey-Market Migration Slowing
iGaming Ontario published its year-two performance review. The numbers confirm the model is working — but the grey-market capture rate is plateauing ahead of target.
The Report
iGaming Ontario (iGO) published its second-year performance review this week, covering April 2025 through March 2026. Total regulated market GGR reached CA$3.2B, a 41% increase year-over-year, with the number of registered players crossing 2.1 million.
Fifty-four operators hold operating agreements as of the reporting period, up from 46 the prior year. The operator list includes all major international brands — Bet365, DraftKings, FanDuel, Flutter subsidiaries — plus an expanding roster of regional entrants.
The Grey-Market Question
The original policy goal of the Ontario framework was to migrate players away from offshore grey-market operators toward regulated, tax-paying alternatives. The first-year capture rate was strong, but the new report notes that year-two migration has slowed.
iGO estimates 85.3% of Ontario online gambling activity now occurs through regulated operators, up from 83.6% at the end of year one. The trajectory is positive but narrowing, and the agency acknowledges that the remaining grey-market share includes entrenched crypto casinos and sportsbooks unwilling to accept Ontario's advertising and product restrictions.
Advertising Restrictions
Ontario's prohibition on celebrity and athlete endorsements in gambling advertising — implemented mid-year one — remains in force and has been credited with measurable reduction in youth exposure. Several operators initially challenged the rule; all have now complied.
The review hints at further advertising tightening in year three, specifically around sign-up bonus promotion on digital platforms. Consultations are expected to open in summer 2026.
Player Impact
Ontario players benefit from regulated operators' consumer protection framework — including segregated player funds, mandatory self-exclusion integration, and formal dispute resolution via iGO. These protections are genuinely meaningful. Offshore operators accessible to Ontarians offer none of them.
Deposit flexibility, promotional aggressiveness, and game library depth all remain somewhat broader at grey-market brands, which explains the plateau in migration. Closing that final 15% likely requires either loosening of Ontario product rules or tighter enforcement against grey-market access — both politically difficult.
Broader Canadian Context
Alberta is the closest province to following Ontario's model, with legislation advancing in early 2026 that could open a regulated marketplace in 2027. British Columbia continues to operate a government-monopoly model with no current plans for private-market opening. Quebec's Loto-Québec monopoly remains unchallenged.